Michigan HELOC Guide 2026: Detroit, Grand Rapids & Beyond

Michigan's housing market has transformed over the past decade. Detroit's revival, Grand Rapids' boom, and Ann Arbor's continued strength mean Michigan homeowners are sitting on more equity than ever. Here's how to tap it wisely.

Michigan HELOC Rates in 2026

Current Michigan HELOC rates range from 7.75% to 10.25% APR, with credit unions dominating the low end.

Michigan's credit union culture is strong. Use it.

Top Michigan HELOC Lenders

Lake Michigan Credit Union

West Michigan powerhouse with increasingly statewide reach.

• Rates: Often starting around 7.75% APR
• Max LTV: Up to 90% CLTV
• Fees: Minimal, competitive with any lender
• Standout: Excellent service, strong reputation

Michigan State University Federal Credit Union (MSUFCU)

One of the nation's largest credit unions, headquartered in East Lansing.

• Rates: Very competitive, starting near 8.00%
• Standout: Open to alumni, employees, and students (easy to join)

Consumers Credit Union

Not to be confused with the Illinois CU of the same name—this is Michigan-based.

• Rates: Solid, mid-range for credit unions
• Standout: Easy membership, good digital experience

Flagstar Bank

Troy-based bank with national mortgage presence.

• Rates: Competitive for existing customers
• Standout: Mortgage expertise translates to HELOC knowledge

Huntington Bank

Major regional bank with strong Michigan presence.

• Rates: Mid-range, relationship discounts available
• Standout: Extensive branch network, full-service banking

Detroit Metro Considerations

The Revival Premium

Detroit's story has changed. Neighborhoods like Corktown, Midtown, and West Village have seen dramatic appreciation. Downtown adjacent areas continue climbing.

For homeowners in reviving areas:

• Your equity may have grown faster than you realize
• Get an appraisal—Zillow struggles with rapidly appreciating Detroit neighborhoods
• Lenders increasingly recognize Detroit's trajectory

The Value Gap

Detroit still has neighborhoods where values remain depressed. If your home is worth under $50,000, HELOC options become limited:

• Many lenders have minimum amounts ($10,000-$25,000)
• At very low values, closing costs become proportionally expensive
• Personal loans might make more sense for small amounts

Detroit Property Taxes

Detroit's property tax rates are high (around 2.8% of assessed value), though the city has worked to align assessments with market values. High taxes affect your DTI ratio—factor them in.

Blight Impact

If neighboring properties have blight issues, your appraisal may suffer. Detroit's demolition programs have helped, but some areas still face challenges.

Grand Rapids & West Michigan Considerations

Boom Market

Grand Rapids has been one of America's hottest mid-size markets. Appreciation has been strong and consistent.

For West Michigan homeowners:

• Equity has built quickly
• Appraisals should reflect recent strong sales
• Lake Michigan Credit Union knows this market exceptionally well

Lake Properties

If you own lakefront property (Lake Michigan, inland lakes), values are premium but:

• Seasonal fluctuations may affect appraisals
• Flood insurance requirements for some properties
• Some lenders specialize in vacation/lake properties

Ann Arbor Considerations

University Town Premium

Ann Arbor commands metro Detroit prices despite being 45 minutes away. University of Michigan's presence creates steady demand and high values.

HELOC considerations:

• Strong equity growth for existing owners
• High property taxes (millage)
• MSUFCU irony: they're happy to serve Ann Arbor despite the rivalry

Rental Potential

Many Ann Arbor homeowners rent rooms to students. If you have rental income, document it—it can help your DTI ratio.

Michigan HELOC Regulations

No Mortgage Tax on HELOCs

Michigan charges a mortgage recording tax on primary mortgages but generally not on HELOCs. This keeps closing costs lower.

Foreclosure by Advertisement

Michigan allows non-judicial foreclosure "by advertisement," which is faster than judicial foreclosure. The process typically takes 4-6 months, shorter than judicial states.

Redemption Rights

Michigan homeowners have 6 months after foreclosure sale to redeem (buy back) the property by paying the full amount owed. For agricultural properties 3+ acres, it's 12 months.

Northern Michigan & UP Considerations

Seasonal Markets

Northern Michigan (Traverse City, Petoskey, Mackinac area) and the Upper Peninsula have significant seasonal property markets.

For vacation/seasonal homeowners:

• Non-owner-occupied rates apply
• Lower max LTV (typically 75-80%)
• Lenders may require proof of year-round habitability

Limited Lender Options

Fewer lenders operate in remote northern areas. Your best bets:

• Lake Michigan Credit Union (reaches statewide)
• MSUFCU (statewide)
• Local community banks

UP Specifics

The Upper Peninsula has extremely affordable housing but limited comparable sales. Appraisals may be conservative. Some national lenders avoid the UP entirely—stick with Michigan-based institutions.

Tax Implications for Michigan Residents

Federal Deduction

Standard rules: HELOC interest deductible when used for home improvement, subject to the $750K total mortgage debt limit.

Michigan State Income Tax

Michigan has a flat 4.25% state income tax. If you itemize federally and have deductible HELOC interest, you'll benefit on your state return too.

Principal Residence Exemption

Michigan offers a property tax exemption for your primary residence (your taxable value is capped at inflation increases). When calculating equity, remember that your market value may be higher than your taxable value.

HELOC vs. Other Options in Michigan

HELOC vs. Land Contract Payoff

Some Michigan homeowners purchased via land contract. If you're now fully on title and have equity, a HELOC converts that into accessible funds—often at lower rates than the original land contract.

HELOC vs. Cash-Out Refinance

If you have a sub-4% first mortgage, protect it. A HELOC accesses equity without touching your primary mortgage rate.

HELOC vs. FHA 203(k)

For major renovations on properties needing work, FHA 203(k) lets you borrow based on future value. But it's complex. If you already have equity, a HELOC is simpler.

How to Get the Best HELOC Rate in Michigan

1. Join Lake Michigan Credit Union or MSUFCU. Both offer excellent rates and are easy to join.

2. Check Consumers Credit Union. Another strong Michigan option.

3. Get quotes from Flagstar. Their mortgage expertise shows in HELOC offerings.

4. Compare at least 3 lenders. Michigan's credit union competition means you have choices.

5. Ask about intro rates. Many Michigan lenders offer promotional periods.

The Bottom Line

Michigan homeowners benefit from an excellent credit union landscape. Lake Michigan Credit Union and MSUFCU consistently offer top rates. Detroit's revival means equity opportunities in areas that were underwater a decade ago. Grand Rapids' boom has created wealth for existing homeowners.

Whatever your Michigan market, get quotes from multiple credit unions before considering banks. The rate savings are real.

---

Ready to see how much equity you can access? [Check your options →]